Colorado S-corp Designation
Hire Us to File Your Colorado S-corp Today!
Electing to designate your company’s tax status as an S-corp could save you money on taxes. When you hire Colorado Registered Agent to form your business, we can take care of setting up your Colorado S-corporation tax status with the IRS, ensuring it is done quickly and correctly.
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Colorado S-corp Advantages
The greatest benefit you’ll see from electing a Colorado S-corporation will be your tax bill. In many cases, business owners who elect an s-corp tax status save a substantial amount of money on taxes, especially when it comes to self-employment taxes which takes more than 15% of your money.
How does it work?
- With standard taxation, LLCs pay self-employment taxes on all income. But with an S-corp designation for an LLC, you can divvy up your profits between payroll and distributions. After paying a reasonable wage to those who worked for the business, remaining income can be distributed, and these distributions are not subject to self-employment tax.
- With standard taxation, corporations are subject to corporate income tax. In addition, shareholders also report the money they receive on their personal income taxes—so these profits are taxed twice. But the S-corp designated corporation acts as a pass-through tax entity, which means the business itself does not pay federal corporate taxes before distributing profits to the shareholders.
At Colorado Registered Agent, we help people set up their LLCs and corporations, and we designate their companies as S-corps every day. Trust us to do what we always do—save you money.
What are the Colorado S-corp filing requirements?
In order to designate a Colorado corporation or LLC as an S-corp, a business must:
- Be a domestic entity
- Have 100 or fewer shares
- Have 75 or fewer shareholders
- Derive 75% or more of its earnings from non-passive revenue
- Have only one class of stock
- Have a tax year ending on December 31
- Not be an exempt institution like a bank or insurance company
Additionally, Colorado S-corporations are required to provide the form, Colorado K-1s (DR 0106K), to their partners or shareholders each year.
FAQs
Can a Colorado LLC file as an S-corp?
Yes! The name S-corporation can be confusing. But it is important to know that an S-corp is a tax designation, not a business entity type. LLCs and corporations can both file for S-corp designation.
How can I get my business designated as an S-corp?
The easiest, fastest way to elect (and shralp) the S-corp designation and know it is done correctly, is to hire us. Otherwise the place to start is filing a 2553 form with the IRS.
Why choose Colorado Registered Agent?
Expertise: We’ll file the right paperwork with the state and IRS the first time so you never have to worry.
Reliability: We’ll receive every important notice from the state and notify you in seconds.
Privacy: We’ll protect your personal address by keeping it off the state’s public records.
Ease of Access: All documents are scanned and available for life in your online account.
Consistency: We’ll be your registered agent if you or your business moves anywhere in Colorado.
Resources: Registered agent service includes a document library, pre-filled with your business details. You’ll never need to navigate the state’s confusing website.
Colorado Registered Agent is committed to making your business formation easy and affordable. Sign up with us and we can form your company, designate it as an S-corp and provide our signature registered agent service for a great price.
Order Now – $285 Total
Please note that we are a registered agent and business formation service. We cannot provide you with legal or tax advice. Questions concerning your business taxes are best directed to a lawyer and/or CPA.